CELESTICA INC (CLS.CA) Stock Fundamental Analysis
TSX:CLS - Toronto Stock Exchange - CA15101Q2071 - Common Stock - Currency: CAD
CLS gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 13 industry peers in the Electronic Equipment, Instruments & Components industry. Both the health and profitability get an excellent rating, making CLS a very profitable company, without any liquidiy or solvency issues. CLS is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make CLS a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year CLS was profitable.
In the past year CLS had a positive cash flow from operations.
Each year in the past 5 years CLS has been profitable.
Each year in the past 5 years CLS had a positive operating cash flow.
1.2 Ratios
CLS's Return On Assets of 8.63% is amongst the best of the industry. CLS outperforms 92.31% of its industry peers.
The Return On Equity of CLS (30.63%) is better than 100.00% of its industry peers.
CLS's Return On Invested Capital of 19.07% is amongst the best of the industry. CLS outperforms 100.00% of its industry peers.
CLS had an Average Return On Invested Capital over the past 3 years of 11.43%. This is in line with the industry average of 11.94%.
The 3 year average ROIC (11.43%) for CLS is below the current ROIC(19.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.63% | ||
| ROE | 30.63% | ||
| ROIC | 19.07% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
1.3 Margins
CLS has a Profit Margin of 5.09%. This is in the better half of the industry: CLS outperforms 69.23% of its industry peers.
CLS's Profit Margin has improved in the last couple of years.
The Operating Margin of CLS (6.56%) is better than 76.92% of its industry peers.
In the last couple of years the Operating Margin of CLS has grown nicely.
CLS's Gross Margin of 11.36% is on the low side compared to the rest of the industry. CLS is outperformed by 84.62% of its industry peers.
In the last couple of years the Gross Margin of CLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.56% | ||
| PM (TTM) | 5.09% | ||
| GM | 11.36% |
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CLS is creating value.
CLS has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CLS has been reduced compared to 5 years ago.
Compared to 1 year ago, CLS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.32 indicates that CLS is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.32, CLS is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
The Debt to FCF ratio of CLS is 2.27, which is a good value as it means it would take CLS, 2.27 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.27, CLS is doing good in the industry, outperforming 76.92% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that CLS is not too dependend on debt financing.
CLS has a worse Debt to Equity ratio (0.48) than 76.92% of its industry peers.
Although CLS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 5.32 |
ROIC/WACC2.24
WACC8.52%
2.3 Liquidity
A Current Ratio of 1.44 indicates that CLS should not have too much problems paying its short term obligations.
CLS has a worse Current ratio (1.44) than 76.92% of its industry peers.
A Quick Ratio of 0.86 indicates that CLS may have some problems paying its short term obligations.
The Quick ratio of CLS (0.86) is worse than 69.23% of its industry peers.
CLS does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.06%, which is quite impressive.
CLS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 48.11% yearly.
Looking at the last year, CLS shows a very strong growth in Revenue. The Revenue has grown by 20.52%.
CLS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.38% yearly.
EPS 1Y (TTM)49.06%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%52.75%
Revenue 1Y (TTM)20.52%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%20.97%
3.2 Future
The Earnings Per Share is expected to grow by 24.42% on average over the next years. This is a very strong growth
Based on estimates for the next years, CLS will show a quite strong growth in Revenue. The Revenue will grow by 16.45% on average per year.
EPS Next Y23.72%
EPS Next 2Y21.86%
EPS Next 3Y22.07%
EPS Next 5Y24.42%
Revenue Next Year13.73%
Revenue Next 2Y15.69%
Revenue Next 3Y16.45%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 41.17, which means the current valuation is very expensive for CLS.
CLS's Price/Earnings ratio is a bit cheaper when compared to the industry. CLS is cheaper than 76.92% of the companies in the same industry.
When comparing the Price/Earnings ratio of CLS to the average of the S&P500 Index (27.03), we can say CLS is valued expensively.
A Price/Forward Earnings ratio of 33.52 indicates a quite expensive valuation of CLS.
Based on the Price/Forward Earnings ratio, CLS is valued cheaper than 84.62% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CLS to the average of the S&P500 Index (36.28), we can say CLS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.17 | ||
| Fwd PE | 33.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CLS indicates a rather cheap valuation: CLS is cheaper than 84.62% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, CLS is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.13 | ||
| EV/EBITDA | 26.84 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CLS has an outstanding profitability rating, which may justify a higher PE ratio.
CLS's earnings are expected to grow with 22.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.74
PEG (5Y)0.86
EPS Next 2Y21.86%
EPS Next 3Y22.07%
5. Dividend
5.1 Amount
No dividends for CLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CLS (8/1/2025, 7:00:00 PM)
268.85
-8.16 (-2.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners76.87%
Inst Owner ChangeN/A
Ins Owners0.53%
Ins Owner ChangeN/A
Market Cap30.92B
Analysts82.22
Price Target143.21 (-46.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.18%
Min EPS beat(2)6.65%
Max EPS beat(2)11.71%
EPS beat(4)4
Avg EPS beat(4)7.71%
Min EPS beat(4)1.95%
Max EPS beat(4)11.71%
EPS beat(8)8
Avg EPS beat(8)9.8%
EPS beat(12)12
Avg EPS beat(12)9.35%
EPS beat(16)16
Avg EPS beat(16)9.16%
Revenue beat(2)2
Avg Revenue beat(2)4.95%
Min Revenue beat(2)2.5%
Max Revenue beat(2)7.4%
Revenue beat(4)3
Avg Revenue beat(4)2.89%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)7.4%
Revenue beat(8)7
Avg Revenue beat(8)3.06%
Revenue beat(12)11
Avg Revenue beat(12)3.55%
Revenue beat(16)13
Avg Revenue beat(16)2.92%
PT rev (1m)3.85%
PT rev (3m)-4.49%
EPS NQ rev (1m)12.15%
EPS NQ rev (3m)16.29%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)8.01%
Revenue NQ rev (3m)8.01%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.17 | ||
| Fwd PE | 33.52 | ||
| P/S | 2.12 | ||
| P/FCF | 58.13 | ||
| P/OCF | 40.89 | ||
| P/B | 12.77 | ||
| P/tB | 19.86 | ||
| EV/EBITDA | 26.84 |
EPS(TTM)6.53
EY2.43%
EPS(NY)8.02
Fwd EY2.98%
FCF(TTM)4.63
FCFY1.72%
OCF(TTM)6.58
OCFY2.45%
SpS126.83
BVpS21.06
TBVpS13.54
PEG (NY)1.74
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.63% | ||
| ROE | 30.63% | ||
| ROCE | 23.8% | ||
| ROIC | 19.07% | ||
| ROICexc | 21.37% | ||
| ROICexgc | 28.15% | ||
| OM | 6.56% | ||
| PM (TTM) | 5.09% | ||
| GM | 11.36% | ||
| FCFM | 3.65% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
ROICexc(3y)13.32%
ROICexc(5y)10.55%
ROICexgc(3y)18.44%
ROICexgc(5y)14.81%
ROCE(3y)14.26%
ROCE(5y)11.14%
ROICexcg growth 3Y31.4%
ROICexcg growth 5Y28.76%
ROICexc growth 3Y37.65%
ROICexc growth 5Y29.81%
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
F-Score7
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.27 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 100.49% | ||
| Cap/Sales | 1.54% | ||
| Interest Coverage | 17.29 | ||
| Cash Conversion | 64.05% | ||
| Profit Quality | 71.71% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 5.32 |
F-Score7
WACC8.52%
ROIC/WACC2.24
Cap/Depr(3y)94.48%
Cap/Depr(5y)73.42%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.34%
Profit Quality(3y)94.3%
Profit Quality(5y)151.44%
High Growth Momentum
Growth
EPS 1Y (TTM)49.06%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%52.75%
EPS Next Y23.72%
EPS Next 2Y21.86%
EPS Next 3Y22.07%
EPS Next 5Y24.42%
Revenue 1Y (TTM)20.52%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%20.97%
Revenue Next Year13.73%
Revenue Next 2Y15.69%
Revenue Next 3Y16.45%
Revenue Next 5YN/A
EBIT growth 1Y40.43%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year45.93%
EBIT Next 3Y22.4%
EBIT Next 5YN/A
FCF growth 1Y59.55%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y45.13%
OCF growth 3Y27.84%
OCF growth 5Y6.55%